My one disagreement in an otherwise excellent discussion is that Kwarteng misses the boat on trade in a major way. He maintains that the UK cannot go back to the gold standard because of trade deficits. His take is governments need to balance budgets and increase exports first.

He has that point backwards. Trade deficits will not fix themselves. Competitive, beggar-thy-neighbor tactics would prevent that. And if the UK and US balanced their budgets, the pound and dollar would soar, and exports would drop.

In contrast, a return to the gold standard will not only fix deficit spending, but it will cure trade deficits in a flash.

That's what I mean by "easy". Certainly, the current political environment and the ensuing short-term pain would be anything but "easy".

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